Property Investment | Targeting Volatile Economies for Property Investors

When marketing your property investment, location will play a key part in the success of your investment offering. Many developers or promoters fall into the trap of exclusively promoting their projects to local markets, but there may be opportunities if you look further afield – more specifically, overseas. 

For individuals working or living in different locations across the world, fluctuations in currency can have a significant impact on their investments. When promoting your property investment, you may have a greater opportunity to secure a sale by targeting investors in volatile economies, with the additional selling point of securing funds in a more stable economy. 

A volatile economy

A country can have a volatile economy for several reasons, but a good example is through a political statement. An adverse statement can cause a countries currency to plummet, making its comparative value less than a stable currency.

Take the South African Rand for example. The rand has fallen harshly in value over the past few years largely due to low economic growth, a low demand for the countries goods and services. 

Volatile economies - Rate of USDZAR

Source: Trading Economics

South African investors are therefore looking to purchase overseas into more stable markets, such as the UK, through peace of mind that the value of their asset is very likely to increase in Sterling, albeit steadily. 

Managing Risk

Diversifying a property portfolio is key to managing risk for an investor, and this extends from the type of investment an individual will make to the currency in which they will place their investments. 

When an investor spreads their investments across several currencies, they are effectively shielding themselves from major loss due to currency fluctuations. Whilst the value of a currency may decrease in value in one country, in another it may be rising. You are effectively avoiding placing all your eggs in one basket!

High net worth overseas investors are likely to be open to an investment in the UK, so you are potentially missing out on a huge audience by not targeting these countries. 

How to target these investors 

The best marketing methods for targeting these overseas investors is through standard marketing channels, paid search being an ideal option here

By promoting your property investment on Google Search, appearing for key search terms such as ‘new property development UK’, you will capture engaged investors searching for these key terms. Importantly, you can target specific cities within the country you are pursuing – taking the South Africa example, you could target Johannesburg and Cape Town exclusively, the two richest cities in the country.

Having this search ad run through to a high quality, SEO focussed landing page that showcases the style and any benefits to the property investment, you maximise your chances of capturing these leads. Make sure to confirm a leads location as well as key contact information such as name, email and phone number on any lead capture forms.

If you are a selling property in the UK, especially if you are a developer, you need to consider targeting overseas investors, particularly in volatile economies.